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So, what are the things you need to pay for when buying a home? The price of the house is one thing you need to pay for. But the actual hidden costs come when you have signed the purchase agreement. These costs are presented to you in the form of closing costs and they include broker fees, tax, title fees and hazard insurance to name a few.
Usually a home buyer has to pay earnest money to cover some of the closing costs, while the balance of the costs are paid by the seller, built into the buyer’s loan or paid in full at the actual closing.
The things that you need to pay for when buying a home are as follows:
- Mortgage loan insurance premium: If you pay less than 20 percent down payment, you require a mortgage loan insurance. In order to get this insurance, you have to pay the required insurance premium and your lender may add the mortgage insurance premium to your mortgage or ask you to pay it when closing the loan.
- Appraisal fee: The property or house you want to buy will be appraised by the lender to estimate its value. This cost varies from $250 to $350 and has to be borne by you, the buyer.
- Home inspection fee: A home inspection may be a condition of your offer to purchase a home. This inspection will give you an idea about the condition of the home and the fee ranges around $500 depending on the complexities of the inspection.
- Land registration fee: Also known as Land Transfer Tax, Deed Registration Fee, Tariff or Property Purchase Tax and you may have to pay this fee upon closing in certain provinces. The fee is usually a percentage of home’s purchase price but can vary.
There might be other things that you may have to pay for when buying a home like reimbursing the home owner for pre-paid costs like property taxes, filling of oil tank; you might have to take out a property insurance mandated by your lender; water quality inspection; legal fees and disbursements; and title insurance.
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Buying your first home is an exciting as well as an intimidating process. There many things that you have to know in order to make the entire buying process run smoothly. Many first time home buyers always want to know what to do first when buying a first home. 
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